SYNOPSIS:
Dalmia Bharat shares rose 4 percent after Q2 FY26 results showed a 388 percent YoY profit surge, an interim dividend declaration, capacity expansions, and renewable energy milestones driving strong operational and growth momentum.
Shares of one of India’s pioneering cement companies and the fourth-largest cement manufacturing company in India by installed capacity surged nearly 4.3 percent on Friday, after reporting Q2 FY26 results with a rise in net profit by around 388 percent YoY and declaring an interim dividend of Rs. 4 per share.
At 02:28 p.m., shares of Dalmia Bharat Limited were trading in green at Rs. 2,263.8 on BSE, up by around 2 percent, compared to its previous closing price of Rs. 2,224.7, with a market cap of Rs. 42,240 crores. The stock has delivered positive returns of over 23 percent in the last one year, but has fallen by around 9 percent in the last one month.
What’s the News
Dalmia Bharat Limited announced the financial results for the second quarter of FY26 on Friday during market hours, as per the latest regulatory filings with the stock exchanges.
For Q2 FY26, the company reported a consolidated net revenue from operations of Rs. 3,417 crores, reflecting a sequential decline of around 6 percent QoQ compared to Rs. 3,636 crores in Q1 FY26, but a year-on-year increase of about 11 percent from Rs. 3,087 crores recorded in Q2 FY25.
During the same period, net profit stood at Rs. 239 crores, indicating a fall of over 39 percent QoQ from Rs. 395 crores in Q1 FY26, but an impressive growth on a year-on-year basis by nearly 388 percent from Rs. 49 crores reported in Q2 FY25. Further, in line with the Capital Allocation framework, the company has declared an interim dividend of Rs 4 per share.
During the quarter, Dalmia Bharat commenced trial runs at the 3.6 MnT clinker line in Umrangso, Assam, in September 2025, with commercial production expected to begin in Q3 FY26. It also commissioned 93 MW of renewable energy (RE) capacity, taking its operational RE capacity to 387 MW and increasing the share of renewable energy in its overall power mix to 48.1 percent.
The company’s current cement capacity stands at 49.5 million tonnes per annum (MnTPA), which is expected to rise steadily through a series of greenfield and brownfield projects. Planned additions include 3 MnTPA each at Belgaum (Karnataka) and Pune (Maharashtra), followed by a 6 MnTPA expansion at Kadapa (Andhra Pradesh) and a new bulk terminal at Chennai (Tamil Nadu). With these projects, total capacity is projected to reach 55.5 MnTPA by FY27, 61.5 MnTPA by Q2 FY28, and ultimately 75 MnTPA by FY28.
Parallelly, Dalmia Bharat’s Clinker Capacity Expansion Plan demonstrates a focused regional growth strategy. The South region is poised to drive the largest share of growth, expanding from 10.4 MnT in FY25 to 17.6 MnT by Q2 FY28. The East region remains stable at 8.3 MnT, while the North East will see a significant rise from 2.7 MnT in FY25 to 6.3 MnT from FY26 onwards. The West region will continue to contribute 2.1 MnT consistently through the expansion period. Consequently, Dalmia Bharat’s total clinker capacity is expected to increase from 23.5 MnT in FY25 to 27.1 MnT by FY26 and 34.3 MnT by Q2 FY28.
Commenting on the company’s performance, Puneet Dalmia, Managing Director & CEO of Dalmia Bharat, stated that the GST rate cut is a commendable initiative by the Indian government to stimulate consumption and demand amid ongoing external geopolitical challenges. He noted that the reduction in GST on cement from 28 percent to 18 percent represents a long-awaited fiscal relief and a welcome step toward strengthening the construction and infrastructure sectors.
Written by Shivani Singh
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